THE EFFECT OF THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE ON THE PERFORMACE OF SHARIA BANKING IN NORTH SUMATERA

Abstract

The banking industry in Indonesia is currently a relatively dynamic economic system and the most developed compared to other industries. The bank acts as a financial intermediary between those who have excess funds and those in need. The purpose of this study is to determine the impact of the implementation of good corporate governance on the performance of Islamic banking in Medan City. The purpose of GCG implementation is to encourage sustainable development of the company through management based on the principles of transparency, accountability, responsibility, independence, and fairness. This research is qualitative research, using interview and observation techniques to collect data. The type of data used is primary data obtained from the Bank Indonesia website and secondary data obtained from various journals related to GCG and Sharia Bank performance. The results of this study show that the implementation of Good Corporate Governance (GCG) in Indonesia is very important to support sustainable economic growth and to ensure the stability of banks in order to continue to operate well, especially in terms of profitability and high capacity. To meet banking regulatory requirements in providing comfort and security for customers and investors who invest in Islamic banking.